I'm unable to run XFree on Cygwin

["Chris Hubbard" <chris at wildcharacters dot com>]

I'm unable to run XFree on Cygwin.

I've downloaded and installed the most recent version of Cygwin (1.3.5).
  I've downloaded and installed XFree per the instructions.  I've searched
 through the mailing list archives and read the faq.  And I still can't get
 XFree to start.
I installed Cygwin to c:\cygwin
When I run startxwin.bat I get the following:
Four error dialog boxes with "A required .DLL file, CYGWIN1.DLL, was not
 found. OK

Looking at the command window I see:
start XWin -screen 0 1024 768
Cannot find file 'XWin' (or one of its components).  Check to ensure the
 path and filename are correct and that all required libraries are
 available.

start xterm -s1 1000 -sb -rightbar -ms red -fg yellow -g black e
 /usr/bin/bash
Cannot find file 'xterm' (or one of its components).  Check to ensure the
 path and filename are correct and that all required libraries are
 available.

start twm
Cannot find file 'twm' (or one of its components).  Check to ensure the
 path and filename are correct and that all required libraries are
 available.

Here's the lines from the startxwin.bat file:
SET CYGWIN_ROOT=c:\cygwin  (I've tried both with and without the c: in the var)
SET PATH=.;%CYGWIN_ROOT%\bin;%CYGWIN_ROOT%\usr\X11R6\bin;%PATH%